FirstEnergy Corp., an electric utility operating in the Appalachian region, announced yesterday they will construct a new substation near Smithfield, WV along with a new two-mile transmission line–in order to send more electricity to a nearby natural gas processing plant. FirstEnergy is spending $63 million to build the new substation and transmission line. The announcement doesn’t name the owner of the natgas processing plant, but we have a guess… Read More “FirstEnergy Building $63M WV Electric Substation for NatGas Plant”
In July MDN reported that GreenHunter Resources–the water resource, waste management, and environmental services subsidiary of Magnum Hunter Resources in the Marcellus/Utica–had brought two new wastewater injection wells online at their Mills Hunter facility in Meigs County, OH (see GreenHunter Brings 2 New Injection Wells Online in Meigs County, OH). At that time GreenHunter had four injection wells operating at the facility, with two final wells awaiting regulatory approval from the Ohio Dept. of Natural Resources (ODNR). From a press release issued yesterday by GreenHunter, it appears the final two wells at the Mills Hunter facility are now online and operating. The only problem is with reduced drilling in the region, there’s not enough wastewater to keep them all as busy as they’d like… Read More “GreenHunter Brings Final 2 Injection Wells Online in Meigs, OH”
MDN’s Jim Willis comes from the marketing world having held marketing positions at various publishing companies over the past 25 years or so. Sometimes (like you) Jim wants to pull his remaining hair out when reading press releases larded up with tech and marketing speak. Just say it in plain English, please! We came across such a press release from GE–as in General Electric. We waded through a tangle of “optimized compression” and “asset level” and “condition-based” phraseology to bring you this news: Crestwood Midstream is using new software from GE that will improve the compressor stations they operate in WV, allowing Crestwood to move more gas using the same equipment. There, that wasn’t so hard, was it? Why can’t marketing types learn the lesson that simple language is better!… Read More “Crestwood Using New GE Software to Tweak Compressor Stations”
In September MDN brought you the news that the buyer of the bankrupt Canadian waterless fracking company, GASFRAC, is shelving the waterless propane fracking product the company was known for (see New Owner “Mothballs” GASFRAC’s Waterless LPG Technology). Our comment at the time was: “The mothballing of the GASFRAC technology raises and interesting question for the effort to frack a well in Tioga County, NY, where a group of farmers had planned to use LPG fracking technology on a test well (see NY Landowners File to Frack Horizontal Well w/Waterless Tech). We sure hope they weren’t pinning their hopes on GASFRAC.” An article in the Binghamton Press & Sun-Bulletin tells us that yes, the Tioga County landowners who want to frack New York’s first Marcellus well were–and still are–planning to use the GASFRAC technology. According to a rep from the Tioga landowner group, they have access to the equipment and technology from GASFRAC to do an LPG frack should they get a green light from the state… Read More “NY Landowners Plan to Use Bankrupt GASFRAC’s Waterless Frack Tech”
Yes, it takes years from the first announcement of a new pipeline project until it’s done and “in service.” In October 2012 MDN told you about a new project from then NiSource and it’s Columbia Pipeline subsidiary called the East Side Expansion (see NiSource Announces Pipeline Expansion Project for Marcellus). Since that time NiSource and Columbia have been separated into two companies with Columbia Pipeline keeping the East Side Expansion project, a project that adds 312 million cubic feet per day (MMcf/d) on the Columbia pipeline system. East Side Expansion involves upgrading compressor stations and adding two short segments of new natural gas pipelines in Chester County, PA and Gloucester County, NJ (Philadelphia area). The Federal Energy Regulatory Commission (FERC) approved the project in December 2014 and construction began shortly after (see FERC Approves Columbia East Side Project in SE PA). Last Friday Columbia announced the East Side Expansion project was placed in service, three years after it was first announced. FERC is hardly the “rubber stamp” organization anti-fossil fuel objectors make it out to be, conducting multi-year top-to-bottom reviews to ensure public safety and to ensure the environment is not adversely affected by new pipeline projects… Read More “Columbia Pipeline’s East Side Expansion Project Goes Online”
A Pennsylvania state judge last Tuesday dismissed a lawsuit by three Cumberland County landowners against Sunoco Logistics Partners over the company’s assertion of eminent domain to build the Mariner East 2 pipeline across their property. Sunoco is currently pumping propane through the Mainer East 1 pipeline and has plans to add a second and third pipeline next to the existing pipeline, collectively called Mariner East 2. All told, Sunoco LP is spending an eye-popping $3 billion to build out the Mariner East project which flows natural gas liquids (propane, ethane, others) from as far away as eastern Ohio to the Philadelphia-area Marcus Hook refinery. The judge, in tossing out the lawsuit, further strengthens Sunoco LP’s argument that the Mariner projects, which will distribute the NGLs flowing through them both within PA and beyond PA, is in fact a public utility under PA law and entitled to use eminent domain, if necessary, to build the project… Read More “PA Judge Rejects Landowners’ Challenge to Mariner East 2 Pipeline”
Dominion is a huge utility/pipeline company operating in 13 states and organized into multiple corporations–but all under the broad umbrella known as Dominion. One of the pieces of the company is called Dominion Transmission, Inc. (DTI)–the interstate and gathering pipeline segment of the company, headquartered in Richmond, VA. Dominion has just announced they will strip out the gathering pipeline bits of the business from DTI and put them into a new company (on paper) called Dominion Gathering & Processing, Inc. It also appears that DTI itself will be renamed to Dominion Resources, Inc. The value of the transaction (what Dominion will essentially pay itself) is $434 million for the gathering assets. Why all of the musical chairs and setting up new corporations on paper? This time it doesn’t appear to be about tax advantages, as it so often is. Dominion is making the change because gathering systems are not regulated under FERC (Federal Energy Regulatory Commission) rules the way interstate pipelines are. By unbundling the gathering pipelines/compressor plants/etc. from the company that operates the interstate pipeline, Dominion can better compete with others in the midstream space. That is, right now because the gathering assets are part of the same company as the interstate pipeline, those assets are subject to FERC regulatory hoops and nonsense–so Dominion is removing those assets from that nonsense–sort of untying their hands to be on a level playing field with others… Read More “Dominion Spins Off Marcellus Gathering System into New Company”
It’s been a while since we’ve heard anything about Pennant Midstream, a joint venture between Columbia Pipeline Group and Hilcorp’s midstream subsidiary Harvest Pipeline Company with assets located mostly in the Mahoning Valley area of Ohio. Columbia, the lead jv partner, announced today that Williams (currently being bought out by Energy Transfer Equity) will become the third partner in the jv. Williams will have an initial 5% ownership share, although it’s not clear to us how much they’ve initially invested for that 5%. However, should Williams want to pony up cash for expansions to the system, they can achieve a full one-third ownership in time. Here’s the announcement with the details Columbia has decided to share… Read More “Williams Joins Columbia & Hilcorp in Pennant Midstream JV”
Since March MDN has been watching the active number of rigs operated by Patterson-UTI Energy as a proxy for whether or not we’ve “turned the corner” on falling rig counts in the Marcellus/Utica. Patterson is a major drilling contractor with operations in the Marcellus/Utica region. We won’t recount all of the numbers here, for that you can read our story from August (see Patterson-UTI Active Rigs (Sadly) Falls Again in August). What do the latest numbers, from September, show? The downward spiral continues… Read More “Patterson-UTI Rig Counts Continue Downward Spiral in September”
It’s kind of funny to hear anti-drilling liberal NPR reporters interview each other and present it as news. Hilarious, in fact. They do their dead-level best to sound objective (which they aren’t) and knowledgeable (which they sometimes are) and haughty (which they always are). Here’s what precipitated the latest round of self-interviews. In July, MDN told you that the New Hampshire Public Utilities Commission (PUC) had given preliminary approval to Liberty Utilities (a NH utility company) to purchase firm capacity on Kinder Morgan’s proposed Northeast Energy Direct extension of the Tennessee Gas Pipeline (see Kinder Morgan Scores Important Victory in NH to Build NED Pipeline). Late Friday, the PUC gave their final approval, so it’s now a 100% done deal. If the pipeline gets built, one of the customers will be Liberty Utilities. And that’s a big problem for anti-fossil fuel nutters whose strategy has been to get deals like the Liberty Utilities deal blocked–thereby denying Kinder the customers they need to build the pipeline. With no one to talk to but themselves, the NPR “reporters” discussed this latest development and what it may mean for the anti-fossil fuelers in New England who oppose it… Read More “NH PUC Grants Liberty Utilities Final Approval to Buy Gas from NED”
We’re still trying to process this bit of news. One of the Seeking Alpha blog writers we’ve enjoyed following over the past year or so is Dallas Salazar. Dallas is the CEO of Austin, TX-based Atlas Consulting. He specializes in “private company lifecycle management, up to and including taking companies public, and in helping consult publicly traded companies ranging in market cap from $100 million to $500 million.” That is, Salazar helps companies raise money to go public, and helps public companies get profitable. He’s just stepped up his game. Salazar said in a letter to Gary Evans (CEO) and the board at Magnum Hunter Resources (MHR) two days ago that he, Salazar, is close to having enough shareholder support to take over the company–unless. Unless what? Unless MHR responds to his demands, which include selling Eureka Hunter posthaste, stop doing some of the things they are now doing that put the company at financial risk, and unless they start talking to him, now. Some might view it as a form of blackmail. Some might say Dallas is transforming himself into a corporate raider, like Carl Ichan. Many call it being an “activist investor.” We’re not sure what to call it or think of it, quite frankly… Read More “Activist Investor Threatens Magnum Hunter with Takeover Unless…”
One reason why it takes so long to build a pipeline is the litigation necessary to make it happen. In September 2014, Dominion committed full force to building a 550-mile, $5 billion natural gas pipeline that will run from West Virginia, through Virginia and into North Carolina (see Dominion Commits to Major New Marcellus/Utica Pipeline Project). The project, called the Atlantic Coast Pipeline, will transport Marcellus and Utica Shale gas to the southeast. In November 2014, Dominion asked the Federal Energy Regulatory Commission (FERC) to begin an environmental review of the project (see Dominion Asks FERC to Start Environmental Review of SE Pipeline). In order to do a proper review and to finalize plans for the route, Dominion surveyors need to get on property of landowners in Virginia, some of whom blocked access–so Dominion had to sue them to gain access (see Dominion Sues VA Landowners to Allow Survey for Pipeline). Virginia landowners in Nelson and Augusta counties counter-sued to block Dominion and on Wednesday, a federal judge dismissed the landowners’ lawsuits, clearing the way for Dominion to enter their properties and complete survey work… Read More “Fed Judge Tosses VA Landowner Lawsuit to Stop Pipeline Surveys”
EQT and NextEra US Gas Assets plan to build the Mountain Valley Pipeline (MVP), a 330-mile pipeline from Wetzel County, WV to the Transco Pipeline in Pittsylvania County, VA. There’s been plenty of pushback from landowners who won’t allow MVP access to survey (see Mountain Valley Pipeline Sues 103 WV Landowners for Survey Access). Perhaps some of the people along the pipeline’s route will be a tad more favorable to the idea knowing that some of the gas flowing through it will heat their homes. Yesterday MVP and RGC Midstream (Roanoke Gas) announced a deal to provide some of the Marcellus/Utica gas in the MVP pipeline to Roanoke Gas customers… Read More “MVP Cuts Deal to Deliver Marcellus Gas to Roanoke Gas Customers”
Kinder Morgan continues to fight an uphill battle to get its Northeast Energy Direct (NED) pipeline project accepted and approved. In March MDN noticed that Kinder had failed to sign up any new customers in the previous eight month period, with commitments remaining at 500,000 dekatherms per day, equivalent to 1/2 Bcf/d (see Kinder Morgan Fails to Sign Up New NED Customers in Last 8 Mos). In July the Kinder Morgan board committed to building the project–but in a scaled back form (see KM Board Approves Scaled-Back New England Pipeline for $3.3B). Most of the attention has been on the portion of the pipeline project that runs from Wright, NY to Dracut, MA–the section of the project Kinder calls “the Market Path.” Anti-fossil fuel nutters in Massachusetts and New Hampshire, where the new pipeline would run, have staged various protests and publicity campaigns. Not much has been said about the portion of the project that will run from northeastern Pennsylvania (Susquehanna County) to Wright, NY (in Schoharie County)–the section Kinder calls “the Supply Path.” That is, not much has been said until now. Kinder announced on Tuesday they’ve landed new/unnamed customers to ship natural gas along the Supply Path portion of NED. Indeed, they’ve signed up 627,000 dekatherms per day (roughly 2/3 of a Bcf/d) for the Supply Path portion of NED… Read More “Kinder Morgan Signs Up New Customers for Portion of NED Pipeline”
Ethane tank in Grangemouth, Scotland – click for larger version
At yesterday’s sessions of the West Virginia Oil and Natural Gas Association (WVONGA) conference at Oglebay Park (Wheeling), WV, MarkWest Energy’s executive vice president and chief commercial officer Greg Floerke talked about natural gas liquids (NGLs)–specially ethane–and the need for a regional ethane cracker plant. Floerke said MarkWest currently processes around 75% of all NGLs in the Marcellus/Utica region and that his company alone could provide enough ethane for several cracker plants. However, for those considering the prospect of spending billions of dollars to build a cracker plant, Floerke says there is a key issue–storage. Cracker plants want to be assured there will be a steady supply and one way you get steady supplies is with storage… Read More “MarkWest Exec Says Ethane Storage Key Issue for NE Cracker Plants”
Perhaps we now know the real reason why a group of anti-fossil fuel protesters decided to abandon their protest at the headquarters of PennEast Pipeline’s main sponsor, UGI. MDN told you yesterday how mainstream media in the New Jersey market covered a “massive” protest (of 35 people) who showed up at the Statehouse in Trenton during the day–with obviously nothing better to do–to protest against the PennEast Pipeline (see Tiny Protest in Trenton, NJ Against PennEast Pipeline is “News”?). The protesters had planned to also show up at UGI headquarters on Tuesday for a similar “massive” protest–but those plans got canceled. We assumed it was because it was food stamp distribution day and the paid-for protesters had better things to do–but maybe we were wrong. Could it be that protest organizers were tipped off that UGI, the lead sponsor of the PennEast Pipeline, was about to be named to a national list of utility companies that are “Environmental Champions”? It wouldn’t look good for THE Delaware Riverkeeper and her acolytes to show up and protest a company that is recognized nationwide as one of the leading environmentally sensitive companies, would it?… Read More “PennEast Pipeline’s Main Sponsor Recognized as Enviro Champion”